One analyst said it was “good news for the UK’s 4th biggest supermarket”, while another said it would turn erstwhile Goliath Tesco into David. Tesco’s shares fell on concerns about the increasing competition.

The FTSE 100 closed up 1.1 points at 6,097.09 on better news on China where the central bank acted on bank reserves to help revive the economy. The FTSE had its first monthly gain since October.